Hi all,
I have problems calculating the gains/losses using the FIFO princip. I have invested about 25k into Crypto in 2017/2018 and as many other I have lost a lot during 2018. My current balance shows 4k USD so I have a total loss of 21k.
i have bought the cointracking software and been spending about 1 day entering all information. After entering it all (Coinbase API, Binance API and Bittrex manually) The tax-report shows a netto loss of only 2k for the 2 years using FIFO. I would think that since my original investment of 25k is reduced to 4k my loss should be 21k? my USD value shows a negative balance of 21k.
I have until the 15 august 2019 to file my taxes so i would appreciate any help - especially if someone knows what could have been wrong or is there something that i'm missing?
Finally if someone would offer the service (for a fair price) to calculate the FIFO i would like to hear (approx 900 transactions)
Thank you all.
Even though the timeline for the filing of tax has passed but this could be useful for someone else who might be in the same situation. What you need to understand is what sort of tax are you supposed to pay on your crypto holding because with that you can then move on to figure out how its been computed by the software. If your coin is exposed to input VAT, then it might not matter whether you made loss or not, they might calculate in on your purchases.
Another thing is that if your crypto is subjected under the Capital Gains Tax, you need to know at what point? Is it at the point of selling for fiat or at the point of selling for other altcoins. Its at that point you know what the software is doing. Although, your net position might have been a loss but maybe you had made some withdrawals to fiat at some time in the past which the software is picking as a basis for the calculation.
